CAMPAIGN FOR CHANGE
Alecto Healthcare Services Hayward, LLC
Campaign for Change
• Expenses originate from:– Services
• Generally contracted, would need to be negotiated
– Supplies • Generally contracted, would need to be negotiated
– Labor• Can be changed within a shorter timeframe
Campaign for ChangeMeasures
Option 1- Workforce Reduction
Employee Cuts
40% Decrease in Staff(391 FTE’s)
Furlough Days
N/A
FTE Staff Salary
$98,060 per year(No Decrease)
FTE Management Salary
$126,497 per year(No Decrease)
Severance Package Cost
$3,682,909 ($9,429 per Terminated
FTE)
Total Expense Savings
$34,619,348
FTE per Unadjusted Occupied Bed Ratio
6.55 FTE’s per Occupied Bed
Note: Wages and estimates were used from Fiscal Year 2011 OSHPD Report
Option 2- Workforce Reduction & Furlough All
FTEs
15.5% Decrease in Staff(150 FTE’s)
2 Days per Month for All Staff
8% Decrease$20,565,410 per year
8% Decrease$731,423 per year
$1,414,350 ($9,429 per Terminated
FTE)
$34,591,483
9.28 FTE’s per Occupied Bed
Option 3- Workforce Reduction & Furlough
All FTEs
7.75% Decrease in Staff (75 FTE’s)
2 Days per Month for All Staff
8% Decrease$13,804,460 per year
8% Decrease$731,723 per year
$707,175 ($9,429 per Terminated
FTE)
$21,183,208
10.14 FTE’s per Occupied Bed
Campaign for Change
• Key Strategic Initiatives1. Decrease FTEs and eliminate unnecessary
expenses
2. Institute the LEAN philosophy
3. Implement the Campaign for Change marketing strategy
Campaign for Change
• Decrease FTEs and eliminate unnecessary expenses– Reduce 7.75% FTEs and furlough all
personnel two-days a month• FTE reduction savings $7 million• Furlough savings $14 million
– Department heads to eliminate avoidable expenses
• Supplies, equipment, and travel $117,000
Campaign for Change
• Institute the LEAN philosophy – Continuous Improvement– Increase quality and efficiency – Decrease cost and expenses– Total employee involvement– Zero
• Waste in processes• Defects in outcomes• Misunderstandings of procedures
Campaign for Change
• Types of Wastes:– Errors/rework– Excess inventory– Transportation– Waiting/delays– Over Processing– Over Production– Excess Motion – Lack of clarity and unused creativity
Campaign for Change
• The Campaign for Change marketing strategy– Hospital branding “Premier Cardiac Center”– Change image of hospital for employees and
community– Incorporate a physician survey and increase
physician engagement
Campaign for Change
• Health care reform impact– Reimbursement legislation
• Lower Medicare & Medi-Cal reimbursement rates• Reduction to DSH program
– Increase number of insured patients• More individuals will qualify for Medi-Cal medical
coverage
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